The Rule of 72: Turning Investment Lemons into Lemonade (or Maybe Champagne?)
The magic of compound interest is one of the great financial forces of the universe—right up there with gravity, but significantly more useful for retirement planning. Yet, for many, it remains an abstract concept, floating somewhere between confusing maths and financial wizardry. Enter the Rule of 72, a brilliantly simple trick that makes sense of this wealth-building sorcery. Wealth grows like a golden tree—thanks to compound interest! What's the Big Idea? (And Why Should I Care?) The Rule of 72 is an elegant little formula that estimates how long it takes for an investment to double at a given annual return. You simply divide 72 by the interest rate. So, if your money is growing at 6% per year, it will double in about 72/6 = 12 years. Want to double your money in 8 years? You’ll need a
Databricks has been gaining market share and growing exponentially while Snowflake revenue growth has fallen off a cliff. The bubble has burst for $SNOW and the narrative has completely been reversed. Large investors has been exiting their positions including Warren Buffett. It seems like the company is failing and is on the trajectory to continuous decline. However, contrary to that, data is crucial to artificial intelligence and there is room more than 2 tech giants in the space. The biggest risk to look at would the Stock-based compensation as they have been paying For instance, in the second quarter of fiscal year 2025, the company reported a net loss of $317 million, largely attributed to high stock-based compensation (SBC) costs, which accounted for approximately 43% of its revenue.